Home sales drop 25 percent in April

Home sales took a big dive in the city of Sioux Falls in April, dropping 25.2 percent year-over-year.

That represents 225 closed sales for the month, or 76 fewer than April 2018, according to the Realtor Association of the Sioux Empire Inc.

“For much of the country, the first quarter of 2019 provided several disruptive weather patterns that contributed to less foot traffic toward potential home sales,” according to an analysis included with the report.

“Coupled with low affordability, higher prices and an inventory situation in its infancy of recovering from record lows – not to mention several more days of wintry weather in April – slower sales persisted across most residential real estate markets.”

New listings increased 4.2 percent year-over-year. The average home on the market actually sold faster than the previous year, taking 84 days on average, or six fewer days than one year ago.

“Buyers are beginning to return in force this spring. For well-priced homes in desirable locations, competition is fierce,” the report said.

The average price of a home sold in April in Sioux Falls was $238,598, down 3.1 percent year-over-year, while the median price was $213,000, up 0.7 percent.

In Sioux Falls, the price range with the largest gain in sales was $700,000 to $800,000, where sales increased 59 percent.

“Sales have actually been steady in higher price ranges, while first-time buyer markets are extremely competitive,” the report said.

Inventory fell 19.1 percent with a 3.1-month supply of homes on the market.

“In order for sales to increase on a grand scale, buyers will need more spending power or sellers will need to reduce prices to land where buyers are most active,” the report said. “Neither situation is likely to occur in 2019, and yet inventory is straining to keep pace in the most competitive price ranges.”